+ Stable Optus mobile revenue. Mobile revenue was unchanged at A$2.74bn. Blended ARPU managed to rise 6% YoY to A$31. This offset a 4.5% YoY decline in subscribers to 9.97mn. Prepaid ARPU suffered the most with a 12% decline due to fewer inbound travellers and foreign students.
+ Bharti remained the bright spot. Operating profits for Bharti in India and Africa surged 74% YoY in 2H21 to S$541mn. Revenue expanded from higher ARPUs and subscribers. However, underlying profit contributions were negated by high finance costs of S$420mn. Singtel’s 31.7% stake in Bharti Airtel is worth S$16.6bn, marked to market.
– Hat trick* cost of S$1.2bn. On 14 May, Singtel announced impairment charges for intangible assets and goodwill for Amobee (S$589mn) and Trustwave (S$336mn). Adding in a S$195mn impairment for Amobee last year and liquidation of Hooq (S$68mn), its acquisition-cum-digital adventure cost at least S$1.18bn over two years, excluding operating losses. Management mentioned that without partners, it is unable to scale up faster.
– Final dividend slashed. Final DPS was cut 56% YoY to 2.4 cents (2H20: 5.45cents). Full-year DPS was 7.5 cents or S$1.23bn, down 39% from the 12.25 cents or S$2.0bn in FY20. This represents a 71% payout of underlying net profits. Guided payout for FY22e is 60-80% (Figure 1). Associate dividends (net of withholding tax) in FY21 were S$1.29bn (FY20: S$1.29mn).